real estate

CBRE Announces $30M Sale of 400 Plaza Drive

CBRE Group, Inc. announces that Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca, of CBRE Institutional Properties, combined with David Opper of CBRE’s Saddle Brook office to represent Hartz Mountain Industries, Inc. in the sale of 400 Plaza Drive in Secaucus, for $30 million. The team was also responsible for procuring the buyer, Extended Success. This follows on the sale of 500 Plaza Drive for $69 million in 2014 and the sale of 100 and 200 Plaza Drive in 2013.

400 Plaza Drive is a 258,000-square-foot four-story office building located in the iconic mixed-use Harmon Meadow complex at the crossroads of Route 3 and the New Jersey Turnpike. Situated just four miles from Manhattan, Harmon Meadow offers a vibrant setting with mass transportation, new multi-family housing and more than 4.4 million square feet of dining and shopping options, including a newly developed LA Fitness Club and a 14-screen movie theater, all within immediate walking distance of the property.

The property benefits from stable, contractual income due to recent long-term lease extensions with its three major tenants. The 9-year weighted average lease term of these major tenants combined with the property’s diversified rent roll and in-place tenancy’s commitment to the property strongly positions 400 Plaza for the execution of a value-add strategy.

Mr. Dunne commented: “The investment provides an exceptional purchase opportunity to strategically rebrand the property and capitalize on the growing demand for live/work/play environments. As young professionals continue to enter the workforce, companies are increasingly placing more value on work environments that contain a mixed-use element, which has become integral in attracting and retaining talented employees. This trend enhances the opportunity for Extended Success to successfully execute a value-add strategy.”

CBRE Institutional Properties specializes in the sale of investment properties in the suburban markets surrounding New York City, and also around the United States. CBRE Institutional Properties services a prestigious client base of institutions, corporations, private investors, developers and REITs and has closed more than $9 billion in property sales in all property types over the last five years.

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